British travel group Thomas Cook is drawing up plans to raise more than 400 million pounds through a share issue, Sky News reported on Tuesday citing people close to the company.

The capital-raising, which is likely to be announced in the coming weeks, will be in the form of a share placing rather than a rights issue, Sky News said.

The share issue is part of the company's plan to overhaul its capital structure and includes other measures like re-negotiating borrowing facilities with lenders, Sky News reported.

Thomas Cook was unavailable for comment.

The 172-year-old travel firm has struggled over the last two years with a slump in sales that has forced it to renegotiate bank loans and sell off planes and stores to lighten its debt load while facing a string of profit warnings.

Thomas Cook cut 2,500 jobs in the United Kingdom last week.

(Reporting by Karen Rebelo in Bangalore; Editing by Tim Dobbyn)